Solving math problems requires using mathematical “first principles”. It also requires understanding multiple complementary domains (Algebra, Geometry, Calculus, Statistics & Proability, etc.), the types of problems each addresses, and how these domains connect / “fit together.” Business management also has multiple domains, i.e. Strategy, Marketing and Operations. They use multiple academic disciplines (e.g. Economics, Finance, Psychology, Quality, etc.) to solve different but complementary problems. However, each domain / discipline is insufficient by itself to resolve complex issues like Integrated Value Management (across a company / its value chain). All must be integrated and synthesized. Sadly value integration is sorely lacking in business. Use the Integrated Value Process (IVP) framework to manage value holistically and optimize your value flows! Read More
Business needs integration! Company value chains are increasingly riddled with inefficient and ineffective inter-company handoffs. Value chains require value to flow to the ultimate customer. For value to flow, three value chain “pipes” — physical, informational, and financial flows — need to be integrated. Intra- and inter-company processes also need to be aligned. Alignment requires a thorough understanding of value, its many definitions, and how the alternative definitions of value converge. If value is not properly understood and managed, multiple value perspectives of value chain stakeholders will diverge. Value gaps result. Value gaps can be eliminated and prevented through value integration. Use the Integrated Value Process to optimize value flows across your enterprise and value chain!
Scientists recently released the first image of a black hole. The public viewed what it had formerly thought was un-seeable. We now had proof: black holes exist! This conclusion is partially true and partially false. When can we believe something — when do we “know” it is true? Conceptual theory generally predates empirical evidence. Thought experiments predict things we may not yet “see.” Oftentimes the evidence is present, but we need new “ways of thinking” to visualize it. That is the case with “value gaps” — the black holes of business value. Use the IVP framework to see them. Read More
“Can’t you just give me the two-minute elevator conversation about value?” While I understand the intense time-pressures faced by today’s executives, I also recognize the dangers of trying to communicate via Tweet-like bursts. Relevance and appropriateness are key. Effective communication is a two-way interaction: it entails cognitive interplay between the receiver and deliverer of a message. Any effective discussion of value must cover three areas — the scope of the company’s “value puzzle”, the desired degree of “value knowledge”, and the intended “value objective(s).” Use the Integrated Value Process (IVP) framework to address all three. Read More
Now more than ever, it is essential to have a deep understanding of the concept of value. More importantly, executives need simultaneously to manage multiple value perspectives across their organizations and value chains. But whose definition of value “wins”? How is value best measured? In today’s hyper-competitive business world, we are pressured to quantify the price of everything so that we can justify the value of anything. Market price has become the shorthand indicator of value. Monetizing value, however, shouldn’t bee the end goal of professionals. Creating value should be! Use the Integrated Value Process (IVP). Read More
To be perceived as strategic, Knowledge Management (KM) professionals need to understand the concept of value. Perhaps it comes as no surprise to KM practitioners that there is surprisingly little consensus on the definition of value in academe / practice. The ensuing alternative definitions of value lead to mistranslation / misinterpretation / misalignment. Read More